International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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The Competitive Advantage of AI in Business: A Strategic Imperative

Author(s) Dr. Simon Suwanzy Dzreke
Country United States
Abstract The rapid growth of artificial intelligence (AI) has transformed how businesses compete, yet most current research focuses on improving efficiency rather than developing long-term advantages. This study addresses that gap by offering a new conceptual and diagnostic framework to understand the complex internal and external factors that constantly influence an organization's unique path toward a sustainable AI advantage. This is a significant contribution to the field of strategic management. The framework is grounded in the Resource-Based View and Dynamic Capabilities Theory. It considers AI Foundational Capabilities (Data Superiority, Algorithmic Prowess, Specialized Talent, Scalable Infrastructure) as dynamic, VRIO-aligned assets that must be strategically managed. The study employed a three-phase mixed-methods approach to gather evidence. It included qualitative case studies of elite multinational organizations that identified enablers and inhibitors, as well as four AI Integration Pathways (Process Optimization, Enhanced Decision-Making, Product/Service Innovation, Ecosystem Orchestration). It also surveyed 412 executives using Structural Equation Modeling to demonstrate that these pathways mediate the impact of capabilities on advantage, moderated by industry context. Additionally, diagnostic synthesis revealed that Data Superiority and Algorithmic Prowess are the primary indirect drivers of innovation. Phase 3 introduces a maturity model combining feedback dynamics—outcomes that reinforce capabilities repeatedly—and isolating mechanisms such as strategic lock-in and increased agility. The study makes three key contributions: (1) integrating AI-specific resource orchestration into dynamic capabilities; (2) illustrating how complementary assets create defensible advantages; and (3) clarifying AI's long-term value through scalability and learning loops. It offers clear guidance on prioritizing strategic AI investments beyond automation by emphasizing capability synergies and governance, considering broader social impacts like workforce transformation and ethical governance, and suggesting future research on long-term adaptation and sector-specific barriers.
Keywords Artificial intelligence, Competitive advantage, Resource-based view, Dynamic capabilities, Strategic management, AI capabilities, Algorithmic prowess, Data superiority, Innovation, Future of work
Field Computer Applications
Published In Volume 7, Issue 4, July-August 2025
Published On 2025-07-06
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E-ISSN 2582-2160
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